Are the days of the mighty greenback dominating the investment horizon coming to a close?

It's inevitable that the world's fast growing Sovereign Wealth Funds, usually funded by petrodollars or manufacturing export dollar earnings, will have to diversify their currency exposure out of dollars.

Arguably, that's partly why globally there is a bit of sustained dollar sell-off going on - the world has been overweight dollars - faute de mieux - for a long time. Yet more worryingly, China is saying not too subtly that it may start to unload it's vast holding off US Treasuries, massively increasing the cost of American debt, which will quickly make the current sub-prime debt mini-crisis look like a Soccer Mom's tea-party.

But why am I posting about this?

The currency exposure of diversified alternative energy investments will start to loom larger and larger in the investor's mind. If you believe, as I do, that alternative energy is an emerging global asset class, then one has to think hard about future currency performance. And a great many of the stocks listed on this site are not quoted in America and are not priced in dollars. So hedging the currency risk with a more diversified portfolio is for this sector, very much an option.